Anti Profiteering Mechanism for benefit of consumers

The Government wants to ensure that all the consumers should get the benefit of lower prices ofgoods and services under GST. For protection ofconsumer’s benefit/interest Government has set up a body calledNational Anti-profiteeringAuthority.
Under the GST regime, Government expects the suppliers of goods and services to pass on the benefit of input tax credit to the consumers. Even the reduction in rate of various goods and services should be given to consumers by way of reduction in price of goods or services.

How does anti profiteering mechanism work

• If the benefit is not passed on to consumers, the affected consumers are required to file an application in prescribed format either beforethe StandingCommittee (if the profiteering relates toall-India level) or beforeState Screening Committee (if the profiteering relates to local or state level).
• Thesecommittees will first confirm whetherprimafacie evidence of profiteering exists or not.
• Ifprimafacie evidence of profiteering exists it will be sent toDirector General of Safeguards, CBEC for furtherinvestigating the case of profiteering.
• Then National Anti-profiteering Authority will determine the profiteering and pass an appropriate order to ensureconsumers benefit by way of
  • reduction in prices;
  • return of the amount not passed on with interest @ 18% to the recipient;
  • imposition of penalty; and
  • cancellation of registration of the supplier

Click here to download the format issued by CBEC for filing Anti-Profiteering application

This article is compiled by CA ANKITA KHETAN. For any queries either write to us in the comments section below or contact@studycafe.in

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CBEC releases concept note about Anti Profiteering Authority under GST

CHAPTER XV of CGST Rules,2017 -Anti-Profiteering Rules

Rule 122 :Constitution of the Authority
Rule 123 :Constitution of the Standing Committee and Screening Committees
Rule 124 :Appointment, salary, allowances and other terms and conditions of service ofthe Chairman and Members of the Authority
Rule 125 :Secretary to the Authority
Rule 126 : Power to determine the methodology and procedure
Rule 127 : Duties of the Authority
Rule 128 : Examination of application by the Standing Committee and ScreeningCommittee
Rule 129 : Initiation and conduct of proceedings
Rule 130 : Confidentiality of information
Rule 131 : Cooperation with other agencies or statutory authorities
Rule 132 : Power to summon persons to give evidence and produce documents
Rule 133 : Order of the Authority
Rule 134 : Decision to be taken by the majority
Rule 135 : Compliance by the registered person
Rule 136 : Monitoring of the order
Rule 137 : Tenure of Authority